Question:
Read the following passage and answer the question
The stock market has demonstrated gravity-defying qualities lately. Despite worries about rate hikes, Fed taper and the inflationary impact of the Russia-Ukraine war, Indian indices rule just 3.5 per cent below lifetime highs. The Finance Minister Nirmala Sitharaman is right in crediting retail investors for the market's shock-absorbing capacity. As Foreign Portfolio Investors (FPIs) have pulled out nearly $19 billion from stocks in the last six months, domestic investors have cushioned the fall by pumping in $20 billion. Selling by FPIs even of a fraction of this amount used to precipitate market meltdowns until a few years ago. In the four years from FY19 to FY22, retail investors have been taking multiple routes to raise their equity allocations. Demat accounts have more than doubled to nudge the 9 crore mark. Inflows into equity mutual funds have risen from 1.1 lakh crore to 1.6 lakh crore, with SIP flows up by 34 per cent. Equity mandates granted to NPS and EPF have allowed these pension funds to invest over 1.5 lakh crore annually in stocks. Apart from these conventional vehicles, individuals have been investing through newer options such as exchange traded funds and curated portfolios. It is heartening to see the equity cult in India taking off despite the withdrawal of policy sops such as zero tax on equity gains. While the retail investor's newfound propensity for equities is good for the economy and markets, there are some discomfiting aspects to it as well. One, it is clear that a large number of first-time investors are preferring direct stock bets over the institutional route. Despite the surge in SIPs, domestic mutual funds today own just 7.4 per cent of the outstanding stock on the NSE, compared to the direct retail holding of 7.3 per cent. Retail investors favour riskier small and mid-cap stocks while institutions prefer large-caps. Two, derivatives turnover on the bourses has trebled in the last couple of years with retail investors making up a third of the volumes. This suggests that many prefer short-term punting on prices to long-term business ownership. Three, with the market's vertical climb from February 2016 punctuated by just one big correction in March 2020 (from which it swiftly recovered) investors who've joined the equity party recently have no experience of a bear market. Equity product pitches rely mainly on past performance, so new investors who have come in post-2019 at Nifty valuations of 25-50 times, may have unrealistic return expectations. This is the fall side to what Sitharaman said about domestic investors stepping in to buy when FPIs head for the exit. Given that the days of global easy-money policies powering asset prices are ending, first-time equity investors need to be made aware of the risks they're taking on, especially in the DIY route. Market regulator SEBI and financial product firms must use their investor education coffers to ensure that new investors understand equity risks. Else, we could have an encore of the 2000 and 2008 experiences when many investors, after being singed by the market correction, left the asset class for good.
The retail investors are...............
Read the following passage and answer the question
The stock market has demonstrated gravity-defying qualities lately. Despite worries about rate hikes, Fed taper and the inflationary impact of the Russia-Ukraine war, Indian indices rule just 3.5 per cent below lifetime highs. The Finance Minister Nirmala Sitharaman is right in crediting retail investors for the market's shock-absorbing capacity. As Foreign Portfolio Investors (FPIs) have pulled out nearly $19 billion from stocks in the last six months, domestic investors have cushioned the fall by pumping in $20 billion. Selling by FPIs even of a fraction of this amount used to precipitate market meltdowns until a few years ago. In the four years from FY19 to FY22, retail investors have been taking multiple routes to raise their equity allocations. Demat accounts have more than doubled to nudge the 9 crore mark. Inflows into equity mutual funds have risen from 1.1 lakh crore to 1.6 lakh crore, with SIP flows up by 34 per cent. Equity mandates granted to NPS and EPF have allowed these pension funds to invest over 1.5 lakh crore annually in stocks. Apart from these conventional vehicles, individuals have been investing through newer options such as exchange traded funds and curated portfolios. It is heartening to see the equity cult in India taking off despite the withdrawal of policy sops such as zero tax on equity gains. While the retail investor's newfound propensity for equities is good for the economy and markets, there are some discomfiting aspects to it as well. One, it is clear that a large number of first-time investors are preferring direct stock bets over the institutional route. Despite the surge in SIPs, domestic mutual funds today own just 7.4 per cent of the outstanding stock on the NSE, compared to the direct retail holding of 7.3 per cent. Retail investors favour riskier small and mid-cap stocks while institutions prefer large-caps. Two, derivatives turnover on the bourses has trebled in the last couple of years with retail investors making up a third of the volumes. This suggests that many prefer short-term punting on prices to long-term business ownership. Three, with the market's vertical climb from February 2016 punctuated by just one big correction in March 2020 (from which it swiftly recovered) investors who've joined the equity party recently have no experience of a bear market. Equity product pitches rely mainly on past performance, so new investors who have come in post-2019 at Nifty valuations of 25-50 times, may have unrealistic return expectations. This is the fall side to what Sitharaman said about domestic investors stepping in to buy when FPIs head for the exit. Given that the days of global easy-money policies powering asset prices are ending, first-time equity investors need to be made aware of the risks they're taking on, especially in the DIY route. Market regulator SEBI and financial product firms must use their investor education coffers to ensure that new investors understand equity risks. Else, we could have an encore of the 2000 and 2008 experiences when many investors, after being singed by the market correction, left the asset class for good.
The retail investors are...............
The stock market has demonstrated gravity-defying qualities lately. Despite worries about rate hikes, Fed taper and the inflationary impact of the Russia-Ukraine war, Indian indices rule just 3.5 per cent below lifetime highs. The Finance Minister Nirmala Sitharaman is right in crediting retail investors for the market's shock-absorbing capacity. As Foreign Portfolio Investors (FPIs) have pulled out nearly $19 billion from stocks in the last six months, domestic investors have cushioned the fall by pumping in $20 billion. Selling by FPIs even of a fraction of this amount used to precipitate market meltdowns until a few years ago. In the four years from FY19 to FY22, retail investors have been taking multiple routes to raise their equity allocations. Demat accounts have more than doubled to nudge the 9 crore mark. Inflows into equity mutual funds have risen from 1.1 lakh crore to 1.6 lakh crore, with SIP flows up by 34 per cent. Equity mandates granted to NPS and EPF have allowed these pension funds to invest over 1.5 lakh crore annually in stocks. Apart from these conventional vehicles, individuals have been investing through newer options such as exchange traded funds and curated portfolios. It is heartening to see the equity cult in India taking off despite the withdrawal of policy sops such as zero tax on equity gains. While the retail investor's newfound propensity for equities is good for the economy and markets, there are some discomfiting aspects to it as well. One, it is clear that a large number of first-time investors are preferring direct stock bets over the institutional route. Despite the surge in SIPs, domestic mutual funds today own just 7.4 per cent of the outstanding stock on the NSE, compared to the direct retail holding of 7.3 per cent. Retail investors favour riskier small and mid-cap stocks while institutions prefer large-caps. Two, derivatives turnover on the bourses has trebled in the last couple of years with retail investors making up a third of the volumes. This suggests that many prefer short-term punting on prices to long-term business ownership. Three, with the market's vertical climb from February 2016 punctuated by just one big correction in March 2020 (from which it swiftly recovered) investors who've joined the equity party recently have no experience of a bear market. Equity product pitches rely mainly on past performance, so new investors who have come in post-2019 at Nifty valuations of 25-50 times, may have unrealistic return expectations. This is the fall side to what Sitharaman said about domestic investors stepping in to buy when FPIs head for the exit. Given that the days of global easy-money policies powering asset prices are ending, first-time equity investors need to be made aware of the risks they're taking on, especially in the DIY route. Market regulator SEBI and financial product firms must use their investor education coffers to ensure that new investors understand equity risks. Else, we could have an encore of the 2000 and 2008 experiences when many investors, after being singed by the market correction, left the asset class for good.
The retail investors are...............
Updated On: Oct 17, 2024
- Preferring to buy large caps due to low risk and better profile of the company
- Preferring debt products than equity
- Preferring institutional route for investment
- Preferring short term punting on prices to long term ownership
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The Correct Option is D
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The correct option is (D):D:-Preferring short term punting on prices to long term ownership
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Top Questions on Reading Comprehension
- Read the excerpt from a Handicrafts Manual: ‘Advanced Knitting Techniques’ and answer the following questions by choosing the most appropriate answer.
THE FAIR ISLE METHOD: Fair Isle knitting is a traditional technique that involves using two or more colours of yarn in a single row to create intricate patterns and designs. This method requires careful tension management to ensure even stitches and prevent puckering. To begin, select your colours and cast on the desired number of stitches. As you knit, alternate between colours every few stitches, carrying the unused yarn along the back of the work. Mastering the Fair Isle technique allows you to create stunning visual effects in garments, accessories, and home textiles.
THE CONTINENTAL STYLE: The Continental knitting style, often referred to as “picking,” involves holding the yarn in the left hand while the right hand manipulates the needles. This method allows for greater speed and efficiency, particularly when working with complex patterns or multiple colours. To practice this style, start by casting on your stitches and using your left hand to tension the yarn. With each stitch, simply “pick” the yarn with your right needle, forming a quick and fluid motion. As you become comfortable with this technique, you may find that your overall knitting speed and comfort improve significantly.
THE SHORT-ROW TECHNIQUE: Short-row knitting is an advanced technique that allows for the creation of shaped garments, such as sleeves and shoulders, without the need for complex shaping. To make a sleeve using this technique, begin by casting on the required number of stitches. Work a portion of the row, then turn your work and return without completing the full row to create the “short rows” that shape the curves of the sleeve. To prevent holes at the turn, wrap the stitch before you turn your work. Repeat this process as needed to achieve the desired shaping and dimension of the sleeve. Once you have shaped the sleeve, you can then sew the side seams to connect the pieces of your garment and finally, complete the edges to ensure a clean finish. This method not only helps shape curves but also adds dimension to your piece, allowing you to enhance fit and style.- AILET BALLB (Hons.) - 2025
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The Story of Coffee
Coffee, a beloved beverage enjoyed by millions around the globe, has a rich and captivating history that spans centuries. The story of coffee begins in the ancient highlands of Ethiopia, where, according to legend, a goat herder named Kaldi discovered the stimulating effects of coffee beans. One day, Kaldi noticed his goats frolicking with unusual energy after eating red berries from a certain tree. Curious, he tried the berries himself and experienced a newfound alertness. This discovery soon spread to monasteries, where monks used it to stay awake during long hours of prayer. From Ethiopia, coffee cultivation and consumption spread to the Arabian Peninsula, particularly in Yemen, where the practice of roasting coffee beans and brewing the drink began to take shape. By the 15th century, coffee had become a popular beverage in the Islamic world, with coffee houses known as ‘qahveh khaneh’ emerging as social hubs for conversation, music, and intellectual exchange. These coffee houses became centers of culture and commerce, influencing the spread of coffee to Turkey and beyond, eventually reaching Europe. In Europe, coffee initially faced resistance from religious authorities who considered it a ‘Muslim drink’ and tried to ban it. However, its popularity persisted, and by the 17th century, coffee houses had sprung up in major European cities, becoming important gathering places for artists, writers, and thinkers. The stimulating effects of coffee were embraced during the Age of Enlightenment, where it was seen as a catalyst for intellectual discussion and innovation. The journey of coffee continued with the establishment of colonial plantations in tropical regions such as the Caribbean, Central and South America, and Southeast Asia. These plantations fuelled the global demand for coffee, transforming it from a regional specialty to a major commodity. The industrial revolution further accelerated coffee production and consumption, leading to innovations in coffee brewing methods and the development of instant coffee. In the modern era, coffee has evolved into a deeply ingrained part of daily life for people worldwide. Its cultural significance spans from the bustling cafes of Paris to the quiet coffee farms of Colombia. Today, coffee remains not only a popular beverage but also a symbol of social interaction, productivity, and enjoyment. Whether sipped slowly over a conversation with friends or grabbed hastily on the way to work, the story of coffee continues to unfold, intertwining with the histories and cultures of countless societies across the globe.- AILET BALLB (Hons.) - 2025
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The intricate world of modern manufacturing is a web of precision and innovation, where even the tiniest components play a pivotal role. One such element, often overlooked but crucial, is the sub-subpart. Whether it’s a carpenter fashioning a bespoke piece of furniture or an automobile engineer designing the next generation of vehicles, the creation of sub-subparts is a fundamental process that demands meticulous craftsmanship and cutting-edge technology. In the realm of woodworking, carpenters frequently work with sub-subparts like dowels, screws, and hinges. These minute components may appear insignificant, yet they determine the structural integrity and functionality of the final product. Crafting a dowel, for instance, begins with selecting the appropriate wood species, followed by precision cutting and shaping. The result is a perfectly cylindrical, sturdy sub-subpart that seamlessly joins two larger pieces of wood. The advent of computer-aided design (CAD) and computer numerical control (CNC) machines has revolutionised this process, enabling carpenters to create sub-subparts with unparalleled precision.
Similarly, in the automobile industry, sub-subparts are the unsung heroes of vehicle construction. Take, for instance, the ball bearing—a minuscule but essential component in the wheels and transmission system. Manufacturing these precision-engineered spheres involves intricate processes like forging, heat treatment, and precision machining. Modern techniques such as laser cutting and 3D printing have streamlined production, ensuring that these sub-subparts meet the demanding standards of the automotive sector. The manufacturing of sub-subparts is a testament to the convergence of traditional craftsmanship and cutting-edge technology. Whether it’s a carpenter’s workshop or a high-tech automotive assembly line, the quest for perfection in sub-subpart creation remains unwavering. The attention to detail and precision required in these processes is a testament to the dedication of craftsmen and engineers alike.
To conclude, while sub-subparts may be small in size, their significance in various industries cannot be overstated. Whether it’s a carpenter working on a timeless piece of furniture or an automotive engineer striving for superior performance, the manufacturing of sub-subparts is a crucial step towards achieving excellence in craftsmanship and technology. This fusion of tradition and innovation accentuates the essence of modern manufacturing.- AILET BALLB (Hons.) - 2025
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\(\text{The Politics of Change}\) \(\text{The Change in Politics}\) \(\text{Politics and Change:}\) A Global Perspective} In "The Politics of Change," political analyst Dr. Emily Harper examines the dynamics of social movements and their impact on policy reform. Through detailed case studies, she explores how grassroots organizations, protests, and advocacy campaigns shape public opinion and influence lawmakers. Dr. Harper provides insights into the strategies that successful movements employ and discusses the challenges they face in a complex political landscape. She discusses key strategies, such as coalition-building, media engagement, and the use of digital platforms to amplify voices. This book by veteran journalist Mark Stevens investigates the shifting political landscape in the 21st century. Focusing on major elections, emerging political parties, and the role of social media, Stevens analyzes how technology and demographics are transforming political engagement and voter behaviour. Through interviews with political leaders, campaign strategists, and everyday voters, Stevens uncovers how demographic shifts and technological advancements are reshaping political discourse in urban areas. He analyzes the implications of these changes for traditional political institutions and explores how movements like #MeToo and Black Lives Matter have disrupted conventional narratives. In this insightful work, international relations scholar Dr. Anika Patel presents a global analysis of political change across various regions. She explores the factors that drive political transitions, including economic shifts, cultural movements, and international influences. Dr. Patel emphasizes the interconnectedness of global politics and how local changes can have far-reaching implications. She analyzes various factors driving political transitions, including economic upheaval, cultural shifts, and the impact of globalization. She provides case studies from diverse regions, such as the Arab Spring, democratic movements in Latin America, and shifts in power in Asia. The book serves as a vital resource for understanding the complexities of political evolution in a rapidly changing world. - AILET BALLB (Hons.) - 2025
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